VAT Group (VACN) H1 2025 earnings summary

Executive summary

• Net sales rose 24% year-over-year to CHF 558 million in H1 2025, driven by strong semiconductor demand and robust backlog execution, despite FX headwinds and geopolitical uncertainties.

• EBITDA increased 22% to CHF 165 million, with a margin of 29.6%, slightly impacted by FX headwinds.

• Free cash flow nearly doubled to CHF 51 million, supported by higher EBITDA and improved working capital.

• Innovation pipeline strengthened, with a 27% increase in specification wins, especially in semiconductor applications.

• Order intake declined 3% year-over-year to CHF 489 million, reflecting softer demand but stable performance at constant FX.

Financial highlights

• Gross profit margin remained high at 65% (down 1 ppt year-over-year), with gross profit at CHF 365 million.

• EBIT increased 25% to CHF 142 million, with EBIT margin stable at 25.4%.

• Net income up 12% year-over-year to CHF 106 million, with EPS at CHF 3.52.

• Capex was CHF 42 million, up 5% year-over-year, representing 7.5% of sales.

• Net debt at CHF 262 million; net debt/EBITDA ratio at 0.8x.

Outlook and guidance

• Full-year 2025 orders, sales, EBITDA, EBITDA margin, net income, and free cash flow expected to exceed 2024 levels.

• Q3 2025 sales guidance: CHF 255–285 million; full-year consensus seen as achievable.

• Capex forecast for 2025 is CHF 75–85 million.

• Growth in 2026 expected to be in the teens, with a flattish start and acceleration as technology transitions materialize.

• WFE spend forecast for 2025 is around 5% growth, with leading-edge chips and AI as key drivers; NAND investments remain slow.